Q: please define the "perpetual bond"

Category: glossary , Asked by: D. V. From Cork, Ireland

A: A bond with no maturity date. Perpetual bonds are not redeemable but pay a steady stream of interest forever. Some of the only notable perpetual bonds in existence are those that were issued by the British Treasury to pay off smaller issues used to finance the Napoleonic Wars (1814). Some in the U.S. Believe it would be more efficient for the government to issue perpetual bonds, which may help it avoid the refinancing costs associated with bond issues that have maturity dates. A perpetual bond is also known as a 'consol'. Since perpetual bond payments are similar to stock dividend payments - as they both offer some sort of return for an indefinite period of time - it is logical that they would be priced the same way. The price of a perpetual bond is therefore the fixed interest payment, or coupon amount, divided by some constant discount rate, which represents the speed at which money loses value over time (partly because of inflation). The discount rate denominator reduces the real value of the nominally fixed coupon amounts over time, eventually making this value equal zero. As such, perpetual bonds, even though they pay interest forever, can be assigned a finite value, which in turn represents their price. Visit NordMarkets

    any foreign exchange platform with expert handbooks for trading that you can advice me of?

    Category: platform by H. Rollins from United States

    We recommend you to go for "etoro.com". This one provides fascinating manuals for first-timers, with easy to follow options and instructions. You can really learn a lot from researching them.

    what is an "investment"?

    Category: glossary by W. Cook from Ireland

    the "investment " is An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price. The building of a factory used to produce goods and the investment one makes by going to college or university are both examples of investments in the economic sense. In the financial sense investments include the purchase of bonds, stocks or real estate property. Be sure not to get'making an investment' and'speculating' confused. Investing usually involves the creation of wealth whereas speculating is often a zero-sum game; wealth is not created. Although speculators are often making informed decisions, speculation cannot usually be categorized as traditional investing.

    Are you familiar with any forex site with a good server connection that you can recommend me of?

    Category: technical by N. L. From Cork, Ireland

    If you're looking for a forex site that has the most secure server connection, we recommend you to check out "AVA FX". Members all the time tell us that they are happy with the connection to the platform. You won't knock against many of the habitual disturbances you frequently get surfing different servers, it's quite simple to install the forex platform, and the connection to the server is usually intact.

Ask a question

Full name:
Email:
Country:
Human?
Question:
Featured Question
    Would you give me a recommendation of a foreign exchange web trading system that has a low min deposit
    If you need a foreign exchange web trading system that has the lowest min deposit, you should clearly check "etoro.com" - the minimum deposit starts from $50, the service is classy, the graphics are pretty modern, plus you're don't have to pay commission in this one. Visit etoro.com

    Want to learn more about forex market network and where to trade forex? Browse through foreign currency exchange services similar to AVA FX, FXDD, Oanda or NobleTrading. Regulated by OSC(CA), ASIC(AU), NFA(US) and CBRC(China), compare mobile phone compatible service, twenty four hour trading, a selection of educational tutorials or a customer support line; in the following languages: turkish, japanese, portuguese and arabic.